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Framing the scope of value in exploratory projects: An expansive value management model

Author

Listed:
  • Thomas Gillier

    (MTS - Management Technologique et Strategique - EESC-GEM Grenoble Ecole de Management)

  • Sophie Hooge

    (CGS i3 - Centre de Gestion Scientifique i3 - Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris Sciences et Lettres - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique)

  • Gérald Piat

    (EDF - EDF)

Abstract

Organizations often launch exploration projects (EP) aiming at developing innovative products (or services) by the exploration of new technologies, users, ecosystems or business models. Because a fundamental purpose of any project is to create value, the approach of value management (or value engineering) has been largely adopted in the organizations to manage the projects. However, the fact to move beyond the existing markets and the established technologies imply great difficulties and uncertainties for managing creative projects. Indeed, because exploration projects precisely aim to invent products (or services) that do not exist before, the value to create is unknown at the start of such project. So, what does value management precisely mean in situation of exploration project? This research aims to clarify the nature, the beneficiaries, and the ways to manage the value in such situations. After reviewing the historical development of the two traditional approaches of value management in project management literature, we then show we show their inadequacies for managing exploratory situations. This article is based on a longitudinal of two case-studies into a collaborative management research conducted with a major French car manufacturer. The two case-studies are an inter-firm EP corresponding to the joint exploration of an innovative multimodal urban platform by the automotive firm and two other industrial partners and an intra-firm EP aiming at generating innovative projects for the development of the electric vehicles. We propose an expansive value management model (EVM) towards three main propositions: 1) evaluating and stimulating the creation of value with a constant comparison with the dominant designs - (2) sustaining the exploration by tuning the degree of undecidability - (3) stimulating the emergence of new ecosystems by the creation of new platforms projects. Finally, this research proposes key managerial principles for EP management and a set of indicators to monitor the exploration process (i.e. identifying design rules to break, managing two kind of design paths...) and the collective dimension (i.e. the beneficiaries...) of EP.

Suggested Citation

  • Thomas Gillier & Sophie Hooge & Gérald Piat, 2013. "Framing the scope of value in exploratory projects: An expansive value management model," Post-Print hal-00824354, HAL.
    • Handle: RePEc:hal:journl:hal-00824354
    Note: View the original document on HAL open archive server: https://minesparis-psl.hal.science/hal-00824354v1
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    File URL: https://minesparis-psl.hal.science/hal-00824354v1/document
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    References listed on IDEAS

    as
    1. James G. March, 1991. "Exploration and Exploitation in Organizational Learning," Organization Science, INFORMS, vol. 2(1), pages 71-87, February.
    2. Thomas Gillier & Gérald Piat & Benoît Roussel & Patrick Truchot, 2010. "Managing Innovation Fields in a Cross-Industry Exploratory Partnership with C-K Design Theory," Post-Print hal-00586603, HAL.
    3. Stuart D. Green & Anita M. M. Liu, 2007. "Theory and practice in value management: a reply to Ellis et al. (2005)," Construction Management and Economics, Taylor & Francis Journals, vol. 25(6), pages 649-659.
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    6. Sylvain Lenfle, 2008. "Exploration and Project Management," Post-Print hal-00404168, HAL.
    7. Pascal Le Masson & Benoit Weil & Armand Hatchuel, 2010. "Strategic Management of Design and Innovation," Post-Print hal-00696953, HAL.
    8. Robert Simons, 1994. "How new top managers use control systems as levers of strategic renewal," Strategic Management Journal, Wiley Blackwell, vol. 15(3), pages 169-189, March.
    9. Douglas K. R. Robinson & Marine Agogué & Pascal Le Masson, 2012. "Orphan innovation, or when path-creation goes stale: a design framework to characterise path-dependence in real time," Post-Print hal-00794429, HAL.
    10. Thomas Gillier & Akin Osman Kazakçi & Gérald Piat, 2012. "The Generation of Common Purpose in Innovation Partnerships : a Design Perspective," Post-Print halshs-00718287, HAL.
    11. Lori Rosenkopf & Atul Nerkar, 2001. "Beyond local search: boundary‐spanning, exploration, and impact in the optical disk industry," Strategic Management Journal, Wiley Blackwell, vol. 22(4), pages 287-306, April.
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    13. repec:hal:wpaper:hal-00707372 is not listed on IDEAS
    14. Sylvain Lenfle, 2011. "The strategy of parallel approaches in projects with unforeseeable uncertainty: the Manhattan case in retrospect," Post-Print hal-00658346, HAL.
    15. Sophie Hooge & Marine Agogué & Thomas Gillier, 2012. "A new methodology for advanced engineering design: Lessons from experimenting C-K Theory driven tools," Grenoble Ecole de Management (Post-Print) hal-00696985, HAL.
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    Cited by:

    1. Sophie Hooge & Laura Le Du, 2014. "Stimulating industrial ecosystems with sociotechnical imaginaries: The case of Renault Innovation Community," Post-Print hal-00975558, HAL.
    2. Sophie Hooge & Albert David, 2014. "What makes an efficient theme for a creativity session?," Post-Print hal-00987220, HAL.

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    Keywords

    value management; exploration; radical innovation; exploratory projects; creativity; dominant design;
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